Sky rival BT challenged Sky's ad, which claimed BT was handing some of its customers a price rise despite promoting price cuts, alleging that it was "misleading".
The Sky national press ad, for the Sky Talk service, stated: "Despite advertising price cuts, BT are giving 11 million customers a price rise today. Are you one of them? At Sky, we believe in real value and fair and honest pricing - that's why Sky customers can get call packages with Sky Talk that are a lot cheaper than either BT or Virgin Media, with no funny business. To join one of the UK's fastest growing phone services, call us ..."
In its defence Sky cited evidence, including mailings sent direct to BT customers highlighting price cuts, which it said were misleading and did not make clear the BT packages to which the price cuts were applicable.
The ASA has now decided to instruct Sky not to use the ad again, noting several changes to BT's prices, terms and conditions.
"We did not consider that Sky had substantiated that BT had intentionally misled customers by surreptitiously increasing their prices," said the ASA.
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